Legal Sports Betting Is Coming To US, As New Jersey Wins Supreme Court Case

It’s game on for sports betting in New Jersey, and perhaps the rest of the country as well.
The state of New Jersey won its US Supreme Court case, as a majority of justices announced that the federal ban on sports wagering is unconstitutional.
More about the backstory of NJ sports betting as well as the Professional and Amateur Sports Protection Act here. Previously, single-game wagering was authorized in the united states only through the Nevada sports gambling industry.
Here is the conclusion of the majority opinion:
The legalization of sport betting requires an important policy choice, but the choice isn’t ours to make. Congress can regulate sports betting right, but when it elects not to do so, each State is free to act by itself. Our job is to interpret the legislation Congress has enacted and choose whether it’s consistent with the Constitution. PASPA isn’t. PASPA”regulate[s] state authorities’ regulation” of the citizens. …. The Constitution gives Congress no power. The judgment of the Third Circuit is reversed.
The court said that it reversed the decision of Appeals. Complete opinion here.
SCOTUS affects on sports gambling The real-world software of this verdict:
New Jersey can now proceed with its own plans to legalize wagering. Some gaming centers in the state have indicated it could be just a matter of weeks before sportsbooks are operations. William Hill has stated in the past it would be live within weeks at Monmouth Park.
West Virginia sports gambling and Mississippi sports betting are also well prepared to move forward with laws on the books.
So can Pennsylvania, that legalized sports wagering in 2017. A PA sports gambling rollout there’s up in the air, but could come later this season.
Sports gambling legislation progressing in several of states can take effect immediately upon passage.
New Jersey seems set to move forward with legislation to govern sports betting, now that PASPA is gone. Its initial law is what amounts to a”partial repeal” of its own sports gambling prohibition, with unregulated wagering capable to happen at the country’s casinos and tracks.
The New Jersey Department of Gaming Enforcement, which will oversee sports gambling from the state, had no comment regarding the decision from SCOTUS today.
A quick timeline of this Situation New Jersey enacted a law in 2014 in which it partially repealed its own sports gambling ban. That law has been an attempt to allow the nation’s casinos and horse betting paths to provide sports wagering by operating on a federal law, the Professional and Amateur Sports Protection Act. That law bans single-game wagering outside Nevada sports betting.
The NCAA and the leading US pro sports leagues — NFL, NBA, MLB and NHL — and the NCAA filed lawsuit to stop the legislation from taking effect. The leagues have standing under PASPA to bring suits which authorize sports betting.
Over the following three Decades, New Jersey dropped in the federal district court and the US Third Circuit Court of Appeals. New Jersey then appealed the case to the US Supreme Court. The Supreme Court agreed to hear New Jersey’s appeal in the summer of 2017.
Oral arguments took place in December; several believed the hour of dialogue between justices and counselor went well for New Jersey.
More from the sports betting decision
The decision in the case clocked in at 49 pages. Six justices joined the vast majority opinion written by Justice Samuel Alito. It was joined by:
Chief Justice John Roberts
Justice Anthony Kennedy
Justice Elana Kagan
Justice Neil Gorsuch
Justice Clarence Thomas
Justice Stephen Breyer agreed with the majority in a separate view, while justices Sonia Sotomayor and Ruth Bader Ginsburg dissented. Breyer also joined the dissent in part.
The top-level takeaways
The vast majority opinion is really unequivocal in stating that PASPA is unconstitutional. Here’s the quick digest of what SCOTUS actually said about PASPA Regarding the law:
When a Condition partially or completely repeals old legislation banning sports betting schemes, it”authorize[s]” these approaches under PASPA.
PASPA’s provision forbidding state authorization of sport betting schemes violates the anticommandeering rule.
PASPA’s provision prohibiting state”licens[ing]” of sport betting schemes also violates the anticommandeering rule. It matters a direct order to the state legislature and suffers from the same defect as the prohibition of state authorization. Thus, this Court shouldn’t decide whether New Jersey’s 2014 law violates PASPA’s antilicensing provision.
No provision of PASPA is severable from the provisions directly at issue.
The bottom line: PASPA is history.
Alito’s takeaways
Alito gives us a brief history of gambling in america and PASPA before getting to the questions of law that were placed in front of the courtroom.
Alito stated the idea that Congress had in mind what NJ did — a partial repeal — is suspicious:
The Third Circuit could not say which, if any, partial repeals are permitted. Respondents and the United States tell us that the PASPA ban on state authorization permits complete repeals, but beyond that they identify no obvious line. It’s unlikely that Congress intended to enact such a nebulous regime.
The state had argued that PASPA commandeered the nation into maintaining its prohibition on the novels. Along with the court, through Alito, agreed.
The PASPA provision at issue hereprohibiting state authorization of sports betting –violates the anticommandeering rule. That provision unequivocally dictates exactly what a state legislature may and may not do.
Reaction to the NJ sports betting case
Here is some reaction from corners:
American Gaming Association
“Today’s decision is a victory for the millions of Americans that attempt to bet on sports in a safe and regulated way. According to a Washington Post poll, a strong 55 percent of Americans believe it is time to end the federal ban online sports betting. Today’s judgment makes it possible for countries and sovereign tribal nations to give Americans what they want: an open, transparent, and responsible market for sports betting.
Through smart, efficient regulation that this new marketplace will protect consumers, preserve the integrity of those games we all enjoy, empower law enforcement to fight illegal gambling, and create new revenue for states, sporting bodies, broadcasters and many more. The AGA stands ready to work with all stakeholders — tribes, states, sports leagues, and law enforcement — to create a new regulatory environment that capitalizes on this opportunity to participate enthusiasts and boost local economies.”
NFL
The NFL’s longstanding and unwavering dedication to protecting the integrity of the sport remains absolute. Congress has long-recognized the possible harms posed by sports gambling to the ethics of sporting competitions as well as the public confidence in these types of events. Given that history, we intend to call on Congress again, this time to enact a heart regulatory frame for legalized sports betting. We will work closely with our clubs to make certain that any state attempts that move forward in the meantime shield our lovers and the integrity of our sport.
NCAA
“Now the United States Supreme Court issued a clear conclusion that PASPA is unconstitutional, reversing the lower courts that held otherwise. While we’re still reviewing the decision to comprehend the general implications to school sports, we will adjust sports wagering and championship policies to align with the direction from the court.”
NBA
Commissioner Adam Silver:
“Today’s decision by the Supreme Court opens the door for states to pass laws legalizing sports gambling. We stay in favor of a federal framework that would provide a uniform approach to sports betting in states that choose to allow it, but we’ll stay active in ongoing talks with state legislatures. Regardless of the particulars of any prospective sports betting law, the ethics of our game remains our highest priority.”
And the players’ association:
“Today’s decision by the Supreme Court will significantly impact our sport — indeed, all sports in this country. The NBPA is going to often in conjunction with the other sports unionswork to ensure that our players’ rights are protected and promoted as we venture into this new land.”
Major League Baseball
“Today’s decision by the Supreme Court will have deep results on Major League Baseball. As each nation considers whether to let sports betting, we’ll continue to seek the proper protections for our game, in partnership with other professional sports. Our main priority is protecting the integrity of the games. We’ll continue to support legislation that promotes air-tight partnerships and coordination between the nation, the casino operators, as well as the governing bodies in athletics toward that goal.”
And the players’ association:
“The Court’s conclusion is massive, with far-reaching implications for baseball players and the sport we love. From complicated intellectual property questions to the most basic topics of players security, the realities of widespread sports betting must be addressed urgently and thoughtfully to prevent placing our sport’s integrity at risk as states proceed with legalization.”
PGA Tour
“Following the Supreme Court’s ruling now, the PGA TOUR reiterates its support of the regulation of sports gambling in a secure and responsible manner. We believe that law is the most effective way of ensuring integrity in competition, protecting consumers, engaging enthusiasts and generating revenue for government, leagues and operators. We stay aligned with the NBA and MLB in this region, and we will continue with our collective efforts to work with legislators, operators, regulators and others in the industry on regulation which serves the interests of all involved.”
MGM
The no. 2 man under MGM Resorts CEO Jim Murren talked to Bloomberg:
“We consider in the subsequent two years to three decades, there are 10 to 12 states that are ripe and ready to trigger that,” MGM President William Hornbuckle said. “We will be there. We will participate in it. We deliver technology. We bring knowledge. And frankly in this space, we bring trust”
888 Holdings
Itai Frieberger, CEO of 888:
“888 continues to be keeping a very close eye on regulatory developments in the US and welcomes today’s announcement as an important step forward in the possible regulation of the US marketplace. The capacity for sports gambling in the united states is important and, since the sole operator in all three regulated US states, we believe 888 is distinctively positioned to exploit the potential growth opportunities in america marketplace that today’s judgment opens up.”
Rep. Frank Pallone
Pallone is a Congressman from New Jersey that has championed sports gambling bills at the national level:
“The Supreme Court’s ruling is a triumph for New Jersey and the rest of the nation. PASPA was clearly unconstitutional, and the ban on sports betting has now rightfully been reversed by the Court. I’ve long believed that New Jersey should have the opportunity to proceed with sports betting. Now that the Supreme Court has struck down this unlawful and confusing law, now is the time for Congress to move the GAME Act forward to make sure that consumer protections are in place in almost any state that decides to execute sports betting.”
Rep. Dina Titus
Titus represents Nevada in Congress.
“Now the Supreme Court has affirmed states’ rights in regards to sports gambling and opened the door for regulated sports betting in states throughout the nation,” said Representative Titus. “A controlled market is obviously better than an unregulated one. As the agent for Las Vegas I have seen the success of the flourishing, controlled sports gambling market in Nevada. The skilled and Amateur Sports Protection Act has spawned a $150 billion annual illegal sports gambling market that lacks consumer protections, which is ripe for manipulation, fuels other illegal actions, and jeopardizes the integrity of sports leagues.
In the coming weeks, I’ll be working together with key stakeholders and industry experts to help educate my colleagues on what this means for their own states and what they are able to learn from the gold standard set in Nevada. Allowing states and tribal sovereign governments to legalize sports betting could boost local markets, raise state revenues, and better protect both consumers and the market, with Nevada showing how. Las Vegas will still be the premier destination for sports gambling, and Nevada will export its experience. The Supreme Court today also sends a very clear message to the Department of Justice which may be applied to some other nations’ rights issues like bud.”
New York
This is Sen. John Bonacic, Who’s sponsoring legislation to legalize wagering in his nation:
“New York was preparing for this moment since as far back as 2013 and we’ve stayed proactive in anticipation of this conclusion by the Court. The Senate Racing, Gaming and Wagering Committee held a public hearing in January that brought together stakeholders from throughout the gaming spectrum to discuss this issue in depth.
Since that moment, I’ve introduced legislation that has passed committee and continued to have productive discussions regarding the problem. I am confident that working together with my colleagues in both the Senate and Assembly, we can have a bill ready for Governor’s signature from the end of the session”
Pechanga Tribe
“We view sports gambling as a possible amenity that will complement our numerous offerings. Now that the Court has ruled, we look forward to participating in a conversation with fellow tribal leaders, policymakers, and industry stakeholders to see if there is a route forward for sports betting in California.”
California Nations Indian Gaming Association
Chairman Steve Stallings:
Moving forward it will take a change to the California Constitution to permit any form of sport wagering. In doing this, we would advise the country to proceed slowly and cautiously and analyze all angles as it pertains to sports gambling. As the condition of California weighs the choice of whether to allow for the practice of sports wagering, we firmly ask that tribes have a place at the table in all discussions surrounding this issue.
In addition, we want to make quite clear that California voters have, on many occasions, supported the exclusive right of California tribal governments to run casino-style games. Legalization of sports gambling shouldn’t develop into a back-door method to infringe upon that exclusivity.
A powerful, well-regulated gaming industry is of extreme importance to California’s tribal governments and the general public. Assessing the integrity of the gaming industry protects California and is our authentic North Star that guides all of our stances and decision DraftKings and FanDuel
Both daily fantasy sports websites have been eyeing legal sports wagering and that interest increases today. DraftKings had already announced its intention to offer sports wagering:
FanDuel:
“The Supreme Court’s conclusion, which paves the way for countries to legalize sports gambling, creates an enormous opportunity for FanDuel as our stage, brand, and customer base provide a unique and persuasive base to participate.
At our center, we are a business that makes sports more exciting. In the exact same manner we revolutionized fantasy sports, we will bring innovation to the sport betting space. This decision allows us to attract the fire and engagement we have seen one of our users to new and expanded marketplaces and create a sports gaming product which fans will love. FanDuel is and will continue to be the premier mobile destination for every sports enthusiast.”
DraftKings CEO Jason Robins:
“Our mission has always been to bring fans closer to the sport they love and now, thanks to the wisdom of the Supreme Court, DraftKings is going to have the ability to harness our proven technologies to provide our clients with revolutionary online sports betting products. This judgment gives us the capacity to further enhance our product offerings and build on our distinctive capacity to drive fan engagement.”

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